Handling of block orders
A regular block order is an order with two characteristics. First, block order refers to more than one hour, and second, a block order is either to be accepted or not accepted as a whole.
However, the “All-or-Nothing” condition require binary acceptance variables because: fractional acceptance is not tolerated for regular block orders.
The main idea is to choose a combination of block orders that maximizes social welfare. However, sometimes the block bidder can experience a loss relative to the resulting spot prices, i.e. block orders that have the accepted price level are not accepted (paradoxically rejected block).
Matching of block orders in the price calculation
For sales orders with order prices that are far from the calculated prices, the sale orders with the lowest prices precede orders with higher prices. Also, with analogous for purchase orders, the order prices that are far from the calculated prices, the purchase orders with the highest prices precede orders with lower prices.
If two block orders are identical, but only one can be accepted, the selection is random.
It should be noted that if two block orders have the same price, the highest volume does not necessarily precede.